Amazon Prime is a simple idea, but one that’s worked wonders for Amazon. The idea of next day shipping for a fixed fee might sound absurd to some companies, but it’s had a huge impact on Amazon and even transformed the way that other businesses have approached these kinds of delivery services.
Is there a benefit to retail subscriptions? And how could they work for your business? It could be time to follow Amazon’s example.
Amazon Prime in a nutshell
Amazon Prime actually launched in 2005. Back then, it offered two-day delivery on certain products for an annual fee, as well as a discounted rate for one-day delivery. Today, Amazon Prime offers one-day shipping on more than 10 million products with both monthly and annual subscription options. There’s no minimum spend, providing flexibility and convenience to customers in exchange for recurring payments. Not only that, but the Prime service also contains Prime Pantry (a grocery delivery service), and of course, access to Prime Video – a significant rival to Netflix.
Taking Amazon from strength to strength
The impact of Amazon Prime has been huge for the company. Now with more than 150 million members globally, it has helped Amazon, which was already a huge retail giant, to experience huge growth over the years. Each year, Amazon continues to expand its Prime offering, enticing a whole new load of customers, driving its profits upwards.
The subscription billing model from Amazon has inspired plenty of other retailers to do the same. Online retailers such as ASOS offer a ‘premium delivery’ service where users pay a one-off fee for unlimited free next day deliveries for a year. For customers, it can be a no-brainer, and for retailers, it could help to boost brand loyalty, as well as give you a steady revenue stream.
Could a retail subscription work for your business?
It’s not just large retailers like Amazon who can benefit from a subscription billing service. Smaller businesses can also capitalize on having recurring payments for products and services. From an online fitness portal to a homeware retailer, there are endless possibilities when it comes to making subscription economy work for you. While the model works best if repeat business is a key part of your revenue, you could introduce new products and services that will allow you to introduce the subscription model.
To ensure recurring revenue, retail subscriptions could take your business to a whole new level. Not only does this kind of service encourage consumers to purchase again and again, but it can also affect the way your customers see your business. By rewarding your subscription customers with special access and incentives, you could develop a whole new level of customer loyalty and respect.
If you’re interested in launching a subscription service for your business, Billsby is at your service. Billsby can help get your subscription service off the ground, transforming your business quickly and easily. Find out more about our recurring billing software and start benefiting from retail subscriptions today.